Pay-Per-Click Destined to Evolve into Pay-Per-Action - Will Google Be Buried with PPC?
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My motive for bringing this up is simple: if Gross is correct yet again in his internet advertising model, Google could be in for some serious trouble if they can’t roll with the punches. After all, nothing lasts forever; especially when that something was almost an instant, overnight success with something as fluid and ever-changing as the internet. But what would it take for a search engine like Google, who relies so heavily upon PPC, its AdWords revenue, to completely switch gears and take on a new business model? Would it even be possible? Unfortunately for Google, they would have to find a way, because it would require a complete remodel of their program. This could be very expensive, and will take a substantial amount of time and effort.
While no one can be sure what the future of PPC may hold, and anyone can have their own speculations and predictions of what internet advertising could be in another five years, one thing is clear: Google will have to make some kind of change, and anyone else that relies so much upon the PPC model. If not now, then they will definitely have to at a later date; not so far into the future, I fear. The change could be as simple as finding other streams of revenue, or it could be as extreme as discarding the model for an entirely different one. Once advertisers understand that they don’t have to pay for unqualified clicks, of which up to 20% could be fraudulent, you better believe they will want to make the jump, and move on to what would be better and smarter advertising for them.
The job will be far easier for the webmaster with the single or the handful of sites to manage, namely, because he or she probably does not rely solely upon advertising revenue from PPC; nor will it be such a monumental job that Google, Yahoo, or any other PPC revenue-dependant company, would have ahead of them.
While Gross’ goal isn’t for Snap to beat Google, he is hoping, however, to provide a viable alternative to PPC programs like AdWords. This is because he believes PPA could prove to be a better solution for advertisers, without having to deal with the throw-away expense of unqualified traffic or click fraud. Unfortunately, as far as Google, or any other advertiser platform, is concerned, click fraud actually does benefit them in the end. I’m not saying they are dragging their feet; but it would behoove advertising arenas to make it safer, and more profitable, for advertisers. After all, if advertisers see their ROI continue to drop, then chances are very good that those advertisers will search for alternatives to PPC. Still, Snap has a way to go to overturn the current model, and I’m certainly not saying it will be easy.
It truly is in Google’s, Yahoo’s, or AOL’s best interest to eliminate the obstacles for the advertiser if they hope to keep advertisers’ business long-term. It will be within the ability to submit to and implement changes that are best for the customer that will allow these companies to ultimately survive. To rest on your laurels in the internet advertising world is a quick death, indeed, even for Google.
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